WINNEBAGO, Ill., July 15, 2026 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. OTCQX:FGFH reported net income of $4.38 million for the quarter ended June 30, 2026, a 47% increase compared to $2.99 million reported for the second quarter of 2025 and a 13% increase compared to $3.89 million reported for the first quarter of 2026. Diluted earnings per share were $1.20 for the quarter compared to $0.82 for the second quarter of 2025 and $1.07 for the first quarter of 2026. The second quarter results produced a return on average assets and return on average equity of 1.04% and 10.07%.
Net income for the first six months of 2026 was $8.27 million, up 122% from $3.72 million for the same period in 2025. Diluted earnings per share for the first half were $2.27, compared with $1.03 in the prior year period. The first half 2026 results produced a return on average assets and return on average equity of 1.00% and 9.60%, respectively.
The earnings growth for the first half of 2026 compared to the prior year period was driven by margin expansion, lower credit costs and reduced non-interest expense, which was partially offset by a decrease in non-interest income. The decrease in non-interest income was due to $1.2 million of non-recurring revenue in the prior year period related to a debit card branding agreement. The reduction in non-interest expenses was also related to non-recurring items in the prior year period, including a $1.96 million impairment charge on a nonmarketable equity investment and $1.88 million of expenses directly related to the charter consolidation initiative.
“We are pleased with the continued momentum recognized during the second quarter,” said Peter Morrison, Chief Executive Officer. “The strategic initiatives completed during the past year are producing measurable results, including stronger profitability, improved operating efficiency and increased shareholder value.”
Net interest income increased to $14.92 million for the quarter ended June 30, 2026, compared to $12.95 million for the second quarter of 2025 and $14.34 million for the first quarter of 2026. The tax-equivalent net interest margin for the second quarter of 2026 expanded to 3.69%, compared to 3.33% in the prior-year quarter and 3.65% in the linked quarter.
For the first six months of 2026, net interest income increased $4.05 million, or 16.1%, to $29.26 million compared to $25.21 million for the first six months of 2025. The taxable equivalent net interest margin expanded to 3.67%, compared to 3.29% in the prior year period.
The growth in net interest income and improvement of the net interest margin for both the second quarter and first half of 2026 was driven primarily by strong deposit growth and a lower cost of deposits compared to the prior year periods. The rate on average interest-bearing deposits decreased by thirty-eight basis points to 2.17% for the first half of 2026 as compared to 2.55% for the first half of 2025. Average total deposits increased by $63.9 million, or 4.6%, to $1.449 billion for the first half of 2026 compared to $1.385 billion in the prior year period. The tax-equivalent yield on average total earning assets increased by ten basis points to 5.35% for the first half of 2026 as compared to the prior year period. Average total loans for the first half increased by $13.9 million to $1.124 billion as compared to $1.110 billion in the first half of the prior year, with the additional liquidity generated by the deposit growth being deployed in investment securities. Average total investment securities for the first half of 2026 increased by $48.6 million as compared to the prior year period, with the yield on investment securities increasing by forty-four basis points.
The provision for credit losses totaled $524 thousand during the second quarter of 2026, compared to $238 thousand in the second quarter of 2025 and $561 thousand in the first quarter of 2026. For the six months ended June 30, 2026 the provision for loan losses totaled $1.08 million, a $451 thousand, or 29%, decrease as compared to the first six months of the prior year.
Asset quality remained solid, with nonperforming assets totaling $16.9 million, or 0.98% of total assets, as of June 30, 2026 as compared to $28.29 million, or 1.76% of total assets, on June 30, 2025, and $16.08 million, 0.91% of total assets as of March 31, 2026.
Noninterest income totaled $2.33 million for the quarter, a $674 thousand decrease compared to $3.00 million in the second quarter of 2025. The decline was due to $1.20 million of non-recurring revenue received in the second quarter of the prior year related to a debit card branding agreement, which was partially offset by a $231 thousand increase in net loan servicing fees due to changes in the fair value of the mortgage servicing asset. In addition, card interchange fees increased by $114 thousand in the quarter compared to the second quarter of 2025, reflecting revenue from the recently implemented proprietary corporate card program.
Non-interest income totaled $4.21 million for the first six months of 2026, compared to $4.95 million for the first six months of 2025, primarily due to $1.2 million of non-recurring revenue recognized in the prior period and a $102 thousand decrease in net loan servicing fees due to valuation fluctuations of the mortgage servicing asset. These decreases were partially offset by a $141 thousand increase in deposit service fees and a $172 thousand increase in card interchange revenue, reflecting the Company’s initiatives to grow core non-interest revenue.
Noninterest expense totaled $10.86 million for the quarter ended June 30, 2026, decreasing by $1.09 million compared to $11.95 million for the second quarter of 2025. The decrease was due to $1.56 million in non-recurring expenses realized in the second quarter of 2025 related to the charter consolidation initiative. This decrease was partially offset by a $304 thousand, or 4.7% increase in salaries and benefits.
Non-interest expense for the first half of 2026 declined by $2.75 million, or 11.4%, to $21.38 million compared to $24.13 million in the first six months of the prior year, reflecting the absence of non-recurring expenses incurred in the prior period, including $1.88 million related to the charter consolidation initiative and a $1.96 impairment charge on a nonmarketable equity investment. These decreases were partially offset by a $689 thousand, or 5.5% increase in salaries and employee benefits.
The Company’s efficiency ratio for the second quarter improved to 62.3%, compared to 73.6% in the prior-year quarter and 64.1% in the linked quarter. The efficiency ratio for the six months ended June 30, 2026 improved to 63.2% compared to 78.6% for the first half of the prior year.
The closing price for the Company’s common stock was $48.04 on June 30, 2026, a 54% increase over the closing price of $31.13 on June 30, 2025. Tangible book value per share increased to $48.48 as of June 30, 2026, compared to $44.37 on June 30, 2025 and $47.95 on March 31, 2026. Excluding accumulated other comprehensive income, tangible book value per share increased to $54.91 as of June 30, 2026 compared to $52.43 on June 30, 2025 and $53.98 on March 31, 2026.
About Foresight Financial Group, Inc.
Foresight Financial Group, Inc. is the largest bank holding company headquartered in Winnebago County, Illinois and is the parent company of Foresight Bank, which has offices in the Illinois counties of Winnebago, Stephenson and Kankakee. Foresight Bank was formed through the legal consolidation of six long-standing community bank subsidiaries of Foresight Financial Group, including German American State Bank, State Bank of Davis, Northwest Bank of Rockford, State Bank (Freeport), Lena State Bank, and State Bank of Herscher. Foresight’s common stock is traded on the “OTCQX” market under the trading symbol FGFH.
Forward-Looking Statements
When used in this communication, the words "believes," "expects," "likely", "would", and similar expressions are intended to identify forward-looking statements. The Company's actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions particularly in the Company's markets; potential deterioration in real estate values, success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which the Company, or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of "critical accounting policies"; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the Company or its customers. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.
| FOR INFORMATION CONTACT: | Peter MorrisonTodd James | Chief Executive Officer Chief Financial Officer | (815) 847-7500(815) 847-7500 |
| Consolidated Balance Sheets | (Unaudited)June 30, December 31, | 2026 2025 | Assets(in thousands, except per share data) | Cash and due from banks$18,419 $15,844 | Interest-bearing deposits in banks 46,830 11,254 | Federal funds sold 1,288 775 | Total cash and cash equivalents 66,537 27,873 | Debt Securities: | Available-for-sale (AFS) 459,322 428,688 | Held-to-maturity (HTM) 2,378 2,378 | Marketable equity securities and other investments 4,436 4,427 | Loans held for sale 441 1,549 | Loans, net of allowance for credit losses 1,103,191 1,127,617 | Premises and equipment, net 17,604 17,855 | Bank owned life insurance 25,323 24,979 | Other assets 33,265 33,281 | Total assets$1,712,497 $1,668,647 | Liabilities and Stockholders' Equity | Deposits | Noninterest-bearing$233,195 $219,275 | Interest-bearing 1,251,414 1,209,276 | Total deposits 1,484,609 1,428,551 | Federal funds purchased - - | Securities sold under agreements to repurchase - - | Federal Home Loan Bank (FHLB) and other borrowings 33,477 53,429 | Accrued interest payable and other liabilities 19,064 16,405 | Total liabilities 1,537,150 1,498,385 | Preferred stock - | Common stock 1,065 1,063 | Additional paid-in capital 16,937 16,720 | Retained earnings 196,620 189,941 | Treasury stock, at cost (16,013) (16,013) | Accumulated other comprehensive loss (23,262) (21,449) | Total stockholders' equity 175,347 170,262 | Total liabilities and stockholders' equity$1,712,497 $1,668,647 |
| Consolidated Statements of Income | (Unaudited)Six Months Ended June 30, | 2026 2025 | (in thousands, except per share data) | Interest and dividend income: | Interest and fees on loans$35,553 $34,657 | Interest on investment securities 6,737 4,985 | Interest on fed funds sold and other deposits 499 817 | Total interest income 42,789 40,459 | Interest expense: | Deposits 12,992 14,464 | Federal funds purchased 1 2 | FHLB and other borrowings 536 780 | Total interest expense 13,529 15,246 | Net interest income 29,260 25,213 | Provision for credit losses 1,085 1,536 | Net interest and dividend income, | after provision for credit losses 28,175 23,677 | Noninterest income: | Customer service fees 1,034 893 | Net securities gains (losses) (44) - | Gain on sale of loans, net 229 163 | Loan servicing fees, net 433 535 | Bank owned life insurance 344 334 | Card interchange fees 1,222 1,050 | Other 992 1,971 | Total noninterest income 4,210 4,946 | Noninterest expenses: | Salaries and employee benefits 13,299 12,610 | Occupancy expense of premises, net 1,560 1,407 | Outside services 775 1,088 | Data processing 2,755 2,614 | Other 2,990 6,410 | Total noninterest expenses 21,379 24,129 | Income before income taxes 11,006 4,494 | Income tax expense 2,739 772 | Net income$8,267 $3,722 | Earnings per common share: | Basic$2.29 $1.03 | Diluted$2.27 $1.03 |
| Consolidated Statements of Income | (Unaudited)For the Quarter Ended | June 30, March 31, December 31, September 30, June 30, | 2026 2026 2025 2025 2025 | Interest and dividend income:(in thousands, except per share data) | Interest and fees on loans$17,885 $17,668 $18,343 $17,893 $17,739 | Interest on investment securities 3,504 3,233 2,983 2,447 2,394 | Interest on fed funds sold and other deposits 331 168 417 150 285 | Total interest income 21,720 21,069 21,743 20,490 20,418 | Interest expense: | Deposits 6,550 6,442 7,158 6,930 7,099 | Federal funds purchased - 1 - 4 - | FHLB and other borrowings 248 288 282 398 370 | Total interest expense 6,798 6,731 7,440 7,332 7,469 | Net interest income 14,922 14,338 14,303 13,158 12,949 | Provision for credit losses 524 561 772 372 238 | Net interest income after provision for loan losses 14,398 13,777 13,531 12,786 12,711 | Noninterest income: | Customer service fees 537 497 445 424 551 | Net securities gains (losses) - (44) - - - | Gain on sale of loans, net 100 129 81 79 26 | Loan servicing fees, net 457 (24) 108 106 226 | Bank owned life insurance 179 165 167 166 177 | Card interchange fees 669 553 581 605 555 | Other 387 605 389 404 1,468 | Total noninterest income 2,329 1,881 1,771 1,784 3,003 | Noninterest expenses: | Salaries and employee benefits 6,712 6,587 6,613 6,808 6,408 | Occupancy expense of premises, net 809 751 795 775 772 | Outside services 424 351 409 615 422 | Data processing 1,438 1,317 1,330 1,407 1,403 | Other 1,480 1,510 2,722 2,751 2,943 | Total noninterest expenses 10,863 10,516 11,869 12,356 11,948 | Income before income taxes 5,864 5,142 3,433 2,214 3,766 | Income tax expense 1,486 1,253 889 612 779 | Net income$4,378 $3,889 $2,544 $1,602 $2,987 | Earnings per common share: | Basic$1.21 $1.08 $0.71 $0.44 $0.83 | Diluted$1.20 $1.07 $0.70 $0.44 $0.82 |
| Consolidated Balance Sheets | (Unaudited)As of | June 30 March 31, December 31, September 30, June 30, | 2026 2026 2025 2025 2025 | Assets(in thousands) | Cash and due from banks$18,419 $18,696 $15,844 $19,601 $28,002 | Interest-bearing deposits in banks 46,830 118,000 11,254 26,994 13,025 | Federal funds sold 1,288 3,900 775 1,989 3,046 | Total cash and cash equivalents 66,537 140,596 27,873 48,584 44,073 | Debt securities: | Debt securities available-for-sale (AFS) 459,322 426,198 428,688 369,287 361,146 | Debt securities held-to-maturity (HTM) 2,378 2,378 2,378 2,741 3,263 | Marketable equity securities and other investments 4,436 4,420 4,427 5,545 5,446 | Loans held for sale 441 352 1,549 - 480 | Loans, net of allowance for credit losses 1,103,191 1,113,139 1,127,617 1,123,376 1,116,498 | Premises and equipment, net 17,604 17,622 17,855 18,054 16,889 | Bank owned life insurance 25,323 25,144 24,979 24,812 24,646 | Other assets 33,265 32,840 33,281 36,373 38,573 | Total assets$1,712,497 $1,762,689 $1,668,647 $1,628,772 $1,611,014 | Liabilities and Stockholders' Equity | Liabilities: | Deposits: | Noninterest-bearing$233,195 $226,404 $219,275 $241,473 $247,002 | Interest-bearing 1,251,414 1,312,249 1,209,276 1,140,725 1,136,961 | Total deposits 1,484,609 1,538,653 1,428,551 1,382,198 1,383,963 | Federal funds purchased - - - - - | Securities sold under agreements to repurchase - - - 26,354 12,466 | Federal Home Loan Bank (FHLB) and other borrowings 33,477 36,668 53,429 37,662 39,889 | Accrued interest payable and other liabilities 19,064 14,302 16,405 15,666 14,737 | Total liabilities 1,537,150 1,589,623 1,498,385 1,461,880 1,451,055 | Stockholders' equity: | Preferred stock - - - - | Common stock 1,065 1,063 1,063 1,063 1,062 | Additional paid-in capital 16,937 16,734 16,720 16,716 16,704 | Retained earnings 196,620 193,037 189,941 188,119 187,237 | Treasury stock, at cost (16,013) (16,013) (16,013) (16,013) (16,013) | Accumulated other comprehensive loss (23,262) (21,755) (21,449) (22,992) (29,031) | Total stockholders' equity 175,347 173,066 170,262 166,892 159,959 | Total liabilities and stockholders' equity$1,712,497 $1,762,689 $1,668,647 $1,628,772 $1,611,014 |
| SELECTED FINANCIAL DATA (Unaudited) | The following table outlines selected financial data as of and for the: | (in thousands, except per share amounts and ratios) | Three Months EndedSix Months Ended | Jun 30,Mar 31,Dec 31,Sep 30,Jun 30, Jun 30, Jun 30, | 2026 2026 2025 2025 2025 2026 2025 | PER COMMON SHARE | Basic earnings$1.21 $1.08 $0.71 $0.44 $0.83 $2.29 $0.20 | Diluted earnings 1.20 1.07 0.70 0.44 0.82 2.27 0.20 | Dividends 0.22 0.22 0.20 0.20 0.20 0.44 0.20 | Book value 48.52 47.99 47.21 46.28 44.41 48.52 44.41 | Tangible book value 48.48 47.95 47.18 46.24 44.37 48.48 44.37 | Tangible book value, excluding AOCI 54.91 53.98 53.12 52.62 52.43 54.91 52.43 | End of period shares outstanding 3,614,260 3,606,428 3,606,123 3,606,123 3,606,087 3,614,260 3,606,087 | Average number of shares outstanding 3,614,153 3,606,425 3,606,119 3,606,119 3,606,137 3,610,310 3,602,112 | Market price 48.04 45.99 41.78 32.48 31.13 48.04 31.13 | PERFORMANCE RATIOS | Return on average assets 1.04% 0.95% 0.60% 0.40% 0.75% 1.00% 0.47% | Return on average equity 10.07% 9.13% 5.96% 3.90% 7.60% 9.60% 4.80% | Net interest margin, tax equivalent 3.69% 3.65% 3.52% 3.41% 3.33% 3.67% 3.29% | Efficiency ratio, tax equivalent 62.29% 64.12% 73.32% 81.23% 73.61% 63.2% 78.57% | Loan to deposit ratio 75.21% 73.11% 79.91% 82.26% 81.66% 75.21% 81.66% | ASSET QUALITY DATA | Nonaccrual loans 16,589 14,409 14,937 25,452 25,939 16,589 25,939 | Accruing loans 90+ days past due 249 1,662 373 1,967 688 249 688 | Total non-performing loans 16,838 16,071 15,310 27,419 26,627 16,838 26,627 | Foreclosed assets 25 7 - 56 703 25 703 | Impaired other investments - - - 961 961 - 961 | Total non-performing assets 16,863 16,078 15,310 28,436 28,291 16,863 28,291 | Total loans held for investment 1,116,178 1,126,264 1,140,600 1,137,006 1,129,719 1,116,178 1,129,719 | Allowance for credit losses 12,987 13,125 12,983 13,630 13,626 12,987 13,626 | Loans, net of ACL 1,103,191 1,113,139 1,127,617 1,123,376 1,116,498 1,103,191 1,116,498 | Nonperforming assets to total assets 0.98% 0.91% 0.92% 1.75% 1.76% 0.98% 1.76% | Nonperforming loans to total loans 1.51% 1.43% 1.34% 2.41% 2.36% 1.51% 2.36% | Allowance to total loans 1.16% 1.17% 1.14% 1.20% 1.21% 1.16% 1.21% | Allowance to nonperforming loans 77.13% 81.67% 84.80% 49.71% 51.17% 77.13% 51.17% | ALLOWANCE FOR CREDIT LOSSES ACTIVITY | Beginning of period balance 13,125 12,983 13,630 13,626 16,092 12,983 14,694 | Provision for loan losses 524 561 772 372 238 1,085 1,536 | Provision for unfunded commitments (412) (120) (14) (5) 224 (532) 334 | Charge-offs (285) (342) (1,594) (373) (2,958) (627) (3,032) | Recoveries 35 43 189 10 30 78 94 | Ending of period balance 12,987 13,125 12,983 13,630 13,626 12,987 13,626 |
| Analysis of Average Balances and Tax Equivalent Interest Rates | (dollars in thousands) | For the Quarters Ended(Dollars in thousands-unaudited) | June 30, 2026 March 31, 2026 June 30, 2025 | Average BalanceInterest (1)Average Rate (1) Average BalanceInterest (1)Average Rate (1) Average BalanceInterest (1)Average Rate (1) | Interest Earning Assets: | Interest bearing deposits and other$32,009 $3314.15% $15,680 $1674.33% $12,712 $2237.05% | Investment securities 481,728 3,6023.00% 463,514 3,3322.92% 441,109 2,5812.35% | Loans 1,119,935 17,9016.41% 1,127,837 17,6836.36% 1,120,619 17,7386.35% | Total Earning Assets$1,633,672 $21,8355.36% $1,607,031 $21,1825.35% $1,574,440 $20,5425.23% | Allowance for credit losses (13,328) (13,128) (16,112) | Cash and due from banks 20,646 21,048 28,640 | Other assets 43,945 47,172 14,452 | Total Assets$1,684,935 $1,662,123 $1,601,420 | Interest Bearing Liabilities: | Interest bearing checking accounts$213,820 $5881.10% $204,135 $5281.05% $249,836 $1,0551.69% | Savings and money market deposits 536,490 2,3691.77% 515,375 2,2161.74% 406,685 1,7281.70% | Time deposits 472,878 3,5933.05% 477,354 3,6993.14% 473,023 4,3313.67% | Total interest bearing deposits 1,223,188 6,5502.15% 1,196,864 6,4422.18% 1,129,544 7,1142.53% | Borrowings 34,649 2472.86% 38,918 2893.01% 57,816 3702.57% | Total Interest Bearing Liabilities$1,257,837 $6,7972.17% $1,235,782 $6,7312.21% $1,187,360 $7,4842.53% | Interest Rate Spread 3.19% 3.14% 2.71% | Noninterest bearing checking accounts 239,120 237,825 242,185 | Other liabilities 13,554 15,652 14,152 | Total liabilities 1,510,511 1,489,259 1,443,697 | Total stockholders' equity 174,424 172,864 157,723 | Total Liabilities and Stockholders' Equity$1,684,935 $1,662,123 $1,601,420 | Net Interest Income/Margin $15,0373.69% $14,4513.65% $13,0593.33% | (1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including a | presentation of net interest income with a net interest margin on a tax-equivalent(TE) basis. Net interest margin is calculated by dividing net | interest income on a TE basis by average earning assets for the period. Nonaccrual loans are included in the above-stated average balances. |
| Analysis of Average Balances and Tax Equivalent Interest Rates | (dollars in thousands) | For Six Months Ended(Dollars in thousands-unaudited) | June 30, 2026 June 30, 2025 | Average BalanceInterest (1)Average Rate (1) Average BalanceInterest (1)Average Rate (1) | Interest Earning Assets: | Interest bearing deposits and other$23,890 $4994.21% $36,208 $8174.55% | Investment securities 472,671 6,9342.96% 424,064 5,3032.52% | Loans 1,123,864 35,5836.38% 1,109,984 34,7226.31% | Total Earning Assets$1,620,425 $43,0165.35% $1,570,256 $40,8425.25% | Allowance for credit losses (13,229) (15,556) | Cash and due from banks 20,846 23,487 | Other assets 45,550 35,995 | Total Assets$1,673,592 $1,614,182 | Interest Bearing Liabilities: | Interest bearing checking accounts$209,004 $1,1161.08% $246,411 $2,0211.65% | Savings and money market deposits 525,991 4,5841.76% 405,453 3,3221.65% | Time deposits 475,103 7,2923.10% 490,289 9,1213.75% | Total interest bearing deposits 1,210,098 12,9922.17% 1,142,153 14,4642.55% | Borrowings 36,772 5362.94% 58,704 7812.68% | Total Interest Bearing Liabilities$1,246,870 $13,5282.19% $1,200,857 $15,2462.56% | Interest Rate Spread 3.17% 2.68% | Noninterest bearing checking accounts 238,476 242,529 | Other liabilities 14,598 14,582 | Total liabilities 1,499,944 1,457,968 | Total stockholders' equity 173,648 156,213 | Total Liabilities and Stockholders' Equity$1,673,592 $1,614,181 | Net Interest Income/Margin $29,4883.67% $25,5973.29% | (1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including a | presentation of net interest income with a net interest margin on a tax-equivalent(TE) basis. Net interest margin is calculated by dividing net | interest income on a TE basis by average earning assets for the period. Nonaccrual loans are included in the above-stated average balances. |